The current liabilities of a business may include:
A) notes payable
B) accounts receivable
C) prepaid expenses
D) depreciation reserves

Question

Quizplus · Accepted Answer

Notes payable are a type of short-term debt that a company owes to creditors, and is included in its current liabilities. Accounts receivable, on the other hand, are considered assets as they represent money owed to the company by customers. Prepaid expenses also represent assets, as they are expenses that have been paid in advance, and are not considered current liabilities. Depreciation reserves do not represent a current obligation of a company and are not included in current liabilities.

The Current Liabilities of a Business May Include